Page 37 - A&A Patents&Design Rewind-2016
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grant (8-10 years). Thus 50% of the phones imported by Lava into India and using the
patent term has terminated by the technology of the suit patents.
time the patent is granted. Further, 4-5
years lapse in negotiations leaving only The order, further directed the Defendant to deposit
5 years of patent protection. In such a sum of Rs.50 crores with the Registrar General of
a case, especially for SEPs that have the Court by way of FDR as security amount on
been registered globally and have been or before 20th June 2016. In addition to that, the
licensed in over hundred agreements, Defendant was also asked to file the statement of
immediate enforcement of patent rights accounts for the period of 2011 to 31st May 2016
has to be encouraged. before the Court by 10th July 2016 and continue
b. The Court also held that the Plaintiff has to file the same quarterly till the final judgment is
been trying to correspond and negotiate delivered in the main suit. The order was to come
with the Defendant for the past four into effect from 21st June 2016.
years and that itself is a huge factor that
militates any grant of further time to the The Court ruled that Ericsson was undisputedly the
Defendant, especially in cases of SEPs, owner of the suit patents and had taken execution of
where a Patentee always endeavours to a FRAND license agreement citing various reasons
negotiate before filing for an injunction. including raising objections regarding Ericsson’s
c. Moreover, it was held that the fact that relationship with Qualcomm. The Court noted
the Defendant was aware of the Plaintiff’s wilful delay on part of Lava to conclude the license
patents but did not challenge the validity agreement on FRAND terms. Moreover, in stark
goes in favour of grant of an injunction. contrast to the allegation put on Ericsson, the Court
held that Lava in fact had a dominant position in the
The Court passed an interim injunction order Indian Market.
prohibiting Lava from importing, exporting,
manufacturing, offering for sale or selling any The order can be accessed at:
mobile phones that use Ericsson’s eight SEPs. The http://lobis.nic.in/ddir/dhc/MAN/
Defendant was also barred from exporting the judgement/13-06-2016/MAN10062016IA57682015.
impugned goods. The Custom Authorities were pdf
directed to not release consignments of mobile
Patents & Design | 37
